Finance

Dissecting the Insider Trading Patterns of General Motors Company (GM)

Recent insider trends for General Motors Company (NYSE:GM) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how GM might perform in the future.

Institutions own 75.05% of General Motors Company (GM)’s shares. The total value of these holdings, in millions, is $45,627. Among active positions in the latest quarter, 420 holders increased their positions by a total of 84.79 million shares, 491 holders decreased the positions by a total of 100.78 million shares, and 128 holders held their positions. This works out to a net decrease in ownership of 15.99 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 97 holders initiated new positions by a total of 13.62 million shares and 76 holders exited their positions by a total of 9.26 million shares. This nets out to an increase of 4.36 million shares and is a bullish sign for GM.

In the last three months, insiders executed a total of 13 trades.13 were sells. Insider ownership decreased by a total of 978484 shares, which suggests that GM’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 14 buys and 88 sells, and ownership decreased by a net of 1.49 million shares.



Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. General Motors Company (NYSE:GM)’s short interest is 36.74 million shares, or 2.81% of the float. This represents a decrease of -0% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GM is a Weak sell, which implies that GM is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that General Motors Company (NYSE:GM) is overvalued.

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